Day Trading vs. after hours trading: what is the difference? Let us define both.
The traditional meaning goes this way: day trading, as the name suggests, usually happens during the daytime or office hours of the financial trading floor. To be more specific, day trading usually happens between 9:30 am to 4:00 pm Eastern Time.
Any transaction that happens afterwards is considered as after hours trading. However, with the growing trend of virtual trading on a global scale, this “time” distinction is now applicable only in the actual trading floor of the major stock exchange centers of the world.
With the expanding population base for novice traders who are staking their own monetary claims in the World Wide Web, day trading and after hours trading is defined by the actual products or commodities that are being traded off.
In this case, after hours trading is relegated to the barter of mutual funds. On the other hand, if you want to learn day trading, you should focus on researching and updating yourself with the financial instruments that are usually (but not exclusively) being bought and sold in the daytime stock exchange.
Some of the most common financial instruments being traded off are stocks, interest rate futures, equity index futures and commodity futures. However, there is a greater majority of casual investors and novice traders now who are trying to learn day trading, for the chance to trade in stock options and of course, currencies in the Forex (foreign exchange) market. It is said that the Forex market is now literally being flooded by bids and calls from traders who are using the Information Highway as their own personal platforms.
Evidently, it is fairly easy to learn day trading skills, and apply these as a way of earning a sustainable income for yourself. The first step is always the hardest, but once surmounted, everything should fall into place. The first step would entail acquiring extensive knowledge of the comings and goings of this trade market.
Books and seminars may provide the necessary background; but admittedly, these would take a lot of time. Besides, with the time-as-money mantra of most people these days, people favor learning day trading skills on the fast track level. Fortunately, there are online manuals, downloadable video step-by-step guides, and e-books that are available for perusal.
At the same time, there are also tools like the FAPS or Forex Autopilot Systems™ that can help any neophyte acquire knowledge and trading skills in a hurry. Aside from the instructional materials that accompany software applications like this, the applications themselves can be a great learning device that provides a hands-on approach to learning day trading skills. Similar automated Forex systems usually include demo software that allows people to try their day trading skills in a mock setup… and this also uses mock currencies as well. This means that a person can hone and harness his or her day trading skills without spending any money during the learning process.